Foundation Ties Bedevil Hillary Clinton’s Presidential Campaign

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Hillary and Bill Clinton at a Clinton Global Initiative event in New York City in 2014. CreditJohn Moore/Getty Images

The kingdom of Saudi Arabia donated more than $10 million. Through a foundation, so did the son-in-law of a former Ukrainian president whose government was widely criticized for corruption and the murder of journalists. A Lebanese-Nigerian developer with vast business interests contributed as much as $5 million.

For years the Bill, Hillary and Chelsea Clinton Foundation thrived largely on the generosity of foreign donors and individuals who gave hundreds of millions of dollars to the global charity. But now, as Mrs. Clinton seeks the White House, the funding of the sprawling philanthropy has become an Achilles’ heel for her campaign and, if she is victorious, potentially her administration as well.

With Mrs. Clinton facing accusations of favoritism toward Clinton Foundation donors during her time as secretary of state, former President Bill Clinton told foundation employees on Thursday that the organizationwould no longer accept foreign or corporate donations should Mrs. Clinton win in November.

But while the move could avoid the awkwardness of Mr. Clinton jetting around the world asking for money while his wife is president, it did not resolve a more pressing question: how her administration would handle longtime donors seeking help from the United States, or whose interests might conflict with the country’s own.

A previously undisclosed email obtained by Citizens United, the conservative advocacy group, through public records lawsuits shows the name of Mr. Pinchuk, described as one of Ukraine’s “most successful businessmen,” among those on an eight-page list of influential people invited to a dinner party at the Clintons’ home.

Earlier in 2012, Ambassador John F. Tefft wrote to Mrs. Clinton about a visit to Ukraine by Chelsea Clinton and her husband, Marc Mezvinsky, “at the invitation of oligarch, Victor Pinchuk.” Mrs. Clinton replied, “As you know, hearing nice things about your children is as good as it gets.”

In July 2013, the Commerce Department began investigating complaints that Ukraine — and by extension Mr. Pinchuk’s company, Interpipe — and eight other countries had illegally dumped a type of steel tube on the American market at artificially low prices.

A representative for Mr. Pinchuk said the investigation had nothing to do with the State Department, had started after Mrs. Clinton’s tenure and been suspended in July 2014. He added that at least 100 other people had attended the dinner party at Mrs. Clinton’s house and that she and Mr. Pinchuk had spoken briefly about democracy in Ukraine.

A deal involving the sale of American uranium holdings to a Russian state-owned enterprise was another example of the foundation intersecting with Mrs. Clinton’s official role in the Obama administration. Her State Department was among the agencies that signed off on the deal, which involved major Clinton charitable backers from Canada.

There was no evidence that Mrs. Clinton had exerted influence over the deal, but the timing of the transaction and the donations raised questions about whether the donors had received favorable handling.

Even if Mr. Clinton steps down, there could be remaining complications about a potential president’s name being affixed to an international foundation. And Chelsea Clinton, who is its vice chairwoman, would continue her leadership role.

“It is very difficult to see how the organization called the Clinton Foundation can continue to exist during a Clinton presidency without that posing all sorts of consequences,” said John Wonderlich, the interim executive director of the Sunlight Foundation, a government watchdog group in Washington. “What they announced only addresses the most egregious potential conflicts.”

Considering the scale and scope of the foundation, Mr. Wonderlich said it was easy to “name a hundred different types of conflicts.”

The reality is, he added, “there are no recusals when you are president.”

A previously undisclosed email obtained by Citizens United, the conservative advocacy group, through public records lawsuits shows the name of Mr. Pinchuk, described as one of Ukraine’s “most successful businessmen,” among those on an eight-page list of influential people invited to a dinner party at the Clintons’ home.

Earlier in 2012, Ambassador John F. Tefft wrote to Mrs. Clinton about a visit to Ukraine by Chelsea Clinton and her husband, Marc Mezvinsky, “at the invitation of oligarch, Victor Pinchuk.” Mrs. Clinton replied, “As you know, hearing nice things about your children is as good as it gets.”

In July 2013, the Commerce Department began investigating complaints that Ukraine — and by extension Mr. Pinchuk’s company, Interpipe — and eight other countries had illegally dumped a type of steel tube on the American market at artificially low prices.

A representative for Mr. Pinchuk said the investigation had nothing to do with the State Department, had started after Mrs. Clinton’s tenure and been suspended in July 2014. He added that at least 100 other people had attended the dinner party at Mrs. Clinton’s house and that she and Mr. Pinchuk had spoken briefly about democracy in Ukraine.

A deal involving the sale of American uranium holdings to a Russian state-owned enterprise was another example of the foundation intersecting with Mrs. Clinton’s official role in the Obama administration. Her State Department was among the agencies that signed off on the deal, which involved major Clinton charitable backers from Canada.

There was no evidence that Mrs. Clinton had exerted influence over the deal, but the timing of the transaction and the donations raised questions about whether the donors had received favorable handling.

Even if Mr. Clinton steps down, there could be remaining complications about a potential president’s name being affixed to an international foundation. And Chelsea Clinton, who is its vice chairwoman, would continue her leadership role.

“It is very difficult to see how the organization called the Clinton Foundation can continue to exist during a Clinton presidency without that posing all sorts of consequences,” said John Wonderlich, the interim executive director of the Sunlight Foundation, a government watchdog group in Washington. “What they announced only addresses the most egregious potential conflicts.”

Considering the scale and scope of the foundation, Mr. Wonderlich said it was easy to “name a hundred different types of conflicts.”

The reality is, he added, “there are no recusals when you are president.”

Source: www.nytimes.com/2016/08/21/us/politics/hillary-clinton-presidential-campaign-charity.html
 

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